All Forum Posts by: Leo K.

Hey @Wilson Adams

I'm in Nashville as well. It's always cool to meet other local guys.

Every Monday there's a laid back lunch meetup at Corky's in Brentwood. Many different people show up - flippers, agents, title companies, wholesalers, buy/hold and even note investors.

If there's anything I can help you with, feel free to reach out!

Can anyone recommend an attorney experienced with master lease options in Nashville or middle TN area?

Go directly to listing agent, cut the middle man. Listing agent facilitates the transaction and gets double commission instead of sharing with your rep.

There are two main groups that meet:

REIN: $149/yr

REIA: $99/yr

I'm a member of both - the info and connections are great. If I was in your shoes I'd connect with some investor friendly agents like @Aaron Anderson and property managers like @Matt Leavell on BP before dropping cash on any meetup groups. The info you'll find on here about Nashville will be similar to the rhetoric you'll hear in any reia.

@Kasey Gourley @Josh Braun

I've talked to a few small local banks who were willing to go 5/25 on a 4 unit. One required 10% down, the other 15% - they were both receptive to allowing a seller carryback in 2nd lien position. Small banks are the way to go.

@William Potting

If you plan to house hack, why not go for a quadplex instead of a single family home? If you're in the military you can qualify for a VA loan for zero down.

With a quad you'll practically be living for free since the other 3 units will pay all or a majority of your mortgage. After you move you'll have a new tenant take over your unit and you should be cash flowing nicely at that point - making money while you're at Camp Lejeune. Just make sure you hire a strong property manager.

I wish I had gone down this route when I first started.

@Steve Bruza

My acquisition strategy is similar to @Josh Braun - I try to get into a deal with as little out of pocket as possible to increase your leveraged cash on cash return. But if you have the 20% down you may want to use it and lock up a 30 yr low interest mortgage if that helps you with peace of mind.

Another option would be to structure a seller carryback with the seller in second position. Bank funds 80% of the deal (seller gets 80% of purchase price) then carries a note for the remaining 20% (preferably interest only with a 10 year ballon). This way you acquire the deal for free and then refinance in 10 years when the rental appreciates high enough to transition into a 30 yr mortgage and pay the guy his 20% back - again for free.

As long as the deal cash flows at 100% financed terms, you're collecting money for free - you didn't invest anything in the deal.

Just ask the seller how much equity he needs out of his property and what he plans to do with the cash. Savvy investors who don't have plans to reinvest cash will understand the benefits of earning 5% returns when the banks are offering 0.1%.

On a macro economic level it's just a matter of time until the market crashes, but I don't think it will happen this year because it's an election year. 

The fed will keep pumping money into the economy via a fourth round of quantitative easing, but the boat has too many holes to be patched up. A fourth round of QE will only serve as a temporary fix. The underlying issue is there's too much debt, China is crashing and will take most of the world with it. 

The semi good news is that America is probably the cleanest shirt in a pile of dirty shirts, the impact here won't be as bad as it will be in other parts of the world but we'll certainly feel the impact.

Several wealthy people that I know aren't buying anything right now - they're waiting for real estate to go on sale in the next downturn.

@Cody Campbell @Dan Nedvidek @Bryan Drury

Hey guys, I'm from middle TN but am contemplating expanding towards Bowling Green - specifically in for small apartments (4-16 units). How's the BG market doing?

I'd love to make it up that way and meet you guys when a meetup is coordinated.

@Kasey Gourley

If the seller agrees to the carryback, I suggest that you contact a credit union or small local bank - it's been my experience that the smaller the bank, the more flexible they are. You definetely want to disclose the carry back up front.